John Revill

ZURICH (Reuters) - Logitech International will mitigate the impact of U.S. President Donald Trump's tariff policies by transferring some of its production of computer mice and other peripherals from China.

CEO Hanneke Faber said she will take a positive approach to dealing with trade barriers, a problem that Logitech is particularly concerned about, which is all products outside the United States, although the country is its largest market, accounting for 35% of sales.

“We will launch an offense when exercising strong cost discipline and agility,” Fabre told analysts after webcam and keyboard manufacturers reported revenue slightly below estimates.

The Swiss-American company currently sells about 40% of the products sold in the U.S. in the U.S. has created a difficult situation after Washington imposed a 145% import tariff from Beijing.

Logitech now hopes to reduce its share of Chinese-made products to 10% by switching more production to Vietnam, Taiwan, Thailand, Malaysia and Mexico, where it has arranged with contract manufacturers.

“We are in a lucky position and we invested in a truly diversified manufacturing footprint,” Fabre said. “So, while I won’t say it’s easy to move quantity, our team did a great job of quickly shifting volumes to mitigate the impact of tariffs.”

Other moves include raising prices in the U.S. by about 10% to cover tariffs, while the company will also focus on the rest of the world, catching 65% of its sales in the rest of the world.

In addition, reducing costs, for example, by delaying hiring and cutting travel and other expenses

The plan announced a 16% decline in non-GAAP operating profit to $133 million in the quarter ended in March, with analyst estimates of $134 million.

Quarterly sales were $1.01 billion, below the $1.03 billion estimate, which is visible to the analyst consensus of Alpha compilation.

Logitech's plan encourages bank Vontobel analyst Michael Foeth, while early-trading stocks in Zurich were 1.5% higher.

"From the positions of competitiveness and financial strength and the highly agile production setup, the company has a compelling trail that can successfully compete in tough times," Foeth said.

(Reported by John Revill, Janaki Venugopalan and Mrinmay Dey in Bangalore; Editors of Shailesh Kuber and Christian Schmollinger)